Re: Samson Corporation – evaluation of additional office space

Argument: add a second story

Memorandum

It has come to their attention that Samson Corp. occupies a single-story building which is located in a suburb. The company has two strategic decisions; either to add a second story to the building or to move into a space lease in the city. The primary goal of the strategic decision is to attract clients and motivate employees. It will also eliminate monotony and improve their company's image as well. The corporate portfolio will gain more room for improvement, especially regarding their reputation. It will create new experiences for Samson's clients and enhance their perception of their company's future. Clients will have confidence in their operations and trust their workers to deliver as requested.

 Recommendations

The best solution for Samson Corporation is to enlarge the building in its current location and add a second story. Maintaining their position is more convenient than moving to the city because the majority of their employees live nearby, while the smallest portion resides further. By expanding their building, the Samson Corporation will encounter benefits as it will retain 75% of its employees, it will protect its confidential materials and security, and more importantly, retain customers and increase profit through establishing a loyal customer base. Other advantages are that in the suburb, Samson's staff will not incur transport costs or waste time searching for new residences. Samson's business will also remain within close vicinity to their clients.

I would not recommend moving to the city because there are higher charges for office lease.  Even though relocating the business to the city will require two weeks, the expenses involved outnumber the costs of adding a second story to the current Samson Corp. building. Since the city imposes 3% income taxes on employees, the company will be forced to raise employees' wages and salaries. Another point is that, even though the city has a good transportation system that is also accessible by the suburb residents, it will be a challenge to retain the 70% living in the suburb, especially due to increased distance.

Given that Samson has sensitive matters to consider, Cane Consulting suggested that they consider the building expansion option, which suits their needs financially and in terms of performance. Although it will take nine months to complete construction, the duration will secure confidential material.  Every organization has critical business assets that need to be handled properly such as proprietary technology, marketing plans and others that are related to customers and employees.  Thus, the company will be able to control access to information and maintain security.

 A significant issue that might disrupt employee concentration and health will be the construction noise and debris respectively. During the construction period, employees will suffer from loud noise, undesirable working time, activities interruption, among other issues that may affect the timely completion of the project.  Another important point is that the idea can cost the company time and money in the long-term period of four to five weeks.